Kelowna rental supply is up and so are prices, says CMHC Rental Market Survey

It’s not the story that Kelowna residents will be used to hearing when it comes to rental housing — supply is currently outpacing demand. That said, it's not helping with cost.

The Canada Mortgage and Housing Corporation annual rental report was issued Wednesday, Jan. 15, showing the region is benefitting from a robust rental supply, but prices are still on the rise.

There are now 6,650 purpose-built rentals in the city today, versus 5,343 just a year ago.

The vacancy rate is 2.7 per cent overall, as of Oct. 2019, which is up from 1.9 per cent for the same period in 2018.

The biggest changes in the rate seem to be in the two-bedroom rental supply. It was at 0.2 per cent in 2017, 0.9 per cent in 2018 and it grew to 2.7 per cent in 2019.

Despite a growing supply, prices also increased. A bachelor suite in Kelowna rents for $968 on average, which is an increase of eight per cent over the previous year.

One bedrooms go for an average of $1,095, which is a 4.4 cost increase, and two bedrooms rent for $1,385 which is a 2.1 per cent increase.

PENTICTON

Nothing much has happened with the rentals in Penticton. In October 2019, there were 2,307 purpose-built rentals compared to 2,232 a year ago.

The vacancy rate is sitting at 1.9 per cent, which is up from 1.7 per cent a year ago.

Prices for rentals has also been stable, year over year.

The average cost for a bachelor suite is $758, a two bedroom unit is $1,132 on average and a three bedroom is $1,537.

The only area with statistically significant growth in price was a one bedroom, which now costs around $917 compared to $869 a year ago.

VERNON

Vernon's rental supply grew marginally from 2018 to 2019, as did the vacancy rate.

The vacancy rate currently sits at 1.9 per cent up from 1.5 per cent a year ago.

There are 1,605 purpose built rentals in Vernon and prices for this tight pool of rentals went up by around 4.7 per cent.

For a bachelor suite, Vernon renters pay around $720. One bedroom renters pay $861, and two bedroom renters pay $1,080 up from $944 a year ago.

If you need a three bedroom it’s on average a cost of $1,155 up from $1,019 a year ago.

THE REST

The agency said the national vacancy rate for purpose-built apartments was at 2.2 per cent, down from 2.4 per cent in 2018 for all bedroom types. The vacancy rate in condo rentals was at one per cent, down from 1.4 per cent.

Vancouver's rental vacancy rate was 1.1 per cent, Toronto and Montreal were at 1.5 per cent and Halifax was one per cent, while vacancy rates for condos were 0.3 per cent in Vancouver and 0.8 per cent in Toronto.

Prairie cities saw much higher vacancies for dedicated rentals, including Regina at 7.8 per cent, Calgary at 3.9 per cent, and Winnipeg at 3.1 per cent.

Nationally, average rents increased by 3.9 per cent for a two-bedroom rental apartment as availability tightened, the fastest pace of same-sample rent growth since 2001.

Vancouver had the highest rent for a two-bedroom apartment at $1,748 after a 4.9 per cent average increase, while for Toronto it was $1,562 after a 6.1 per cent climb. Rents were much higher in condo rentals, averaging $2,476 for a two-bedroom in Toronto, and $2,045 in Vancouver.

We welcome your comments and opinions on our stories but play nice. We won't censor or delete comments unless they contain off-topic statements or links, unnecessary vulgarity, false facts, spam or obviously fake profiles. If you have any concerns about what you see in comments, email the editor in the link above.

This is the time of year when thoughts of Okanagan residents often turn to floods – especially after the dramatic and devastating spring floods of 2017 and 2018. Recent flooding from Mill Creek , near downtown Kelowna, served as a wa

Strawberry season has begun and these sweet red berries, a favourite for many, are incomparable when fresh and in season. There are a million and one ways to utilize strawberries while they are at their best. Make sure to eat as many as you